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The price for the plan undercuts both 3 and T-Mobile by offering it at £26, dropping to £21 if you are a Virgin Media broadband, phone or TV customer and entitled to the £5 discount.

Customers will also be entitled to free insurance for the length of the contract, including 24-hour handset replacement and the ability to remotely restore all your contacts – if you install the app on the handset before it goes missing.

The new tariff reflects the trend towards mobile data as the primary purpose of communication on mobile devices.

Operators tried to ditch unlimited data as an option in 2010 as they realised how much customers were using, but when caps were enforced, users were not only dissatisfied but also still not using their minutes and texts as much as they used to.

As a result, mobile networks were force to do a U-turn, with 3 becoming the first company to offer unlimited data without a fair usage policy to its customers.

Now, operators are rumoured to be looking at new charges altogether, based around data usage rather than location and duration of calls. However, for now, customers will have the options on the table from three of the networks to use as much data as they please.

Jamie Heywood, director of mobile at Virgin Media, sang the praises of his company’s decision, saying: “We’re rewarding loyalty with some amazing tariffs with unlimited offerings that our customers can enjoy without worrying about hidden extras, as well as helping to combat bill shock.”

The new tariffs are rolling out across Virgin Media’s different sales channels this week.

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